OK, so I'm on my 20th is collection from a broker in my 20 years in business. Each of these times that I've had to peel back the layers of payment I've discovered that the broker has double brokered the load. In every case, when I call the customer (shipper/consignee) they have steered me to another broker who gave it down the line.
If brokers are allowed to rebroker freight, I feel that this is harmful to the carrier. There shouldn't be anyone between the carrier and the customer but to add more unnecessary layers? I think that the gov't needs to recognize this as an unnecessary economic hardship on carriers outlaw it.
Making rebrokering illegal would help clean out many of these unnecessary players and streamline the supply chain.
Should double brokering be made illegal?
Discussion in 'Freight Broker Forum' started by ttnae, Aug 14, 2020.
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Double brokering is illegal, but is distinct from co-brokering, which is done with full knowledge of the 'main' broker. The act is in the deception. I'm trying to find the relevant laws, which may take me a bit. That said, I don't like either, and have been known to drop the hammer when someone tries to double broker me.
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49 U.S. Code § 13902 - Registration of motor carriers - Outlines that carriers cannot broker transportation services unless registered as a broker. (See (a)(6))
49 U.S. Code § 13904 - Registration of brokers - Outlines requirements to register as a broker
Chiefly, this primarily affects people representing themselves as asset-based carriers, as written. I'm *pretty sure* that there's something, somewhere that also deals with brokers misrepresenting themselves as carriers, but I'll need to do some more digging to find that.alds, TallJoe, stuckinthemud and 2 others Thank this. -
Thank you. I was looking for these but I'm saying that the gov't needs to make 3pl's, brokers and any others non carriers that are in the chain, go direct to truck and hold them accountable for not doing so. If the "Logistics provider or broker" can not find a truck then they have failed. If the only thing that they have done is to provide another broker then they have failed. The shippers SHOULD see this way as well.
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PSM379 Thanks this.
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PPDCT Thanks this.
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What they do is take a load as a carrier, pass it off to a brokerage they have or work with.PPDCT Thanks this. -
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